King Wan (SGX:554) Gross Margin % : 1.05% (As of Sep. 2023)

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What is King Wan Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. King Wan's Gross Profit for the six months ended in Sep. 2023 was S$0.41 Mil. King Wan's Revenue for the six months ended in Sep. 2023 was S$39.19 Mil. Therefore, King Wan's Gross Margin % for the quarter that ended in Sep. 2023 was 1.05%.

Warning Sign:

King Wan Corp Ltd gross margin has been in long-term decline. The average rate of decline per year is -36.9%.

The historical rank and industry rank for King Wan's Gross Margin % or its related term are showing as below:

SGX:554' s Gross Margin % Range Over the Past 10 Years
Min: 0.49 Med: 11.64 Max: 16.23
Current: 1.13

During the past 13 years, the highest Gross Margin % of King Wan was 16.23%. The lowest was 0.49%. And the median was 11.64%.

SGX:554's Gross Margin % is ranked worse than
93.98% of 1612 companies
in the Construction industry
Industry Median: 19.255 vs SGX:554: 1.13

King Wan had a gross margin of 1.05% for the quarter that ended in Sep. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for King Wan was -36.90% per year.

King Wan Gross Margin % Historical Data

The historical data trend for King Wan's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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King Wan Gross Margin % Chart

King Wan Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Gross Margin %

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10.47

12.81

6.57

10.01

0.49

King Wan Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Gross Margin %	Get a 7-Day Free Trial															10.13	9.90	-0.38	1.20	1.05

Competitive Comparison of King Wan's Gross Margin %

For the Engineering & Construction subindustry, King Wan's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

King Wan's Gross Margin % Distribution in the Construction Industry

For the Construction industry and Industrials sector, King Wan's Gross Margin % distribution charts can be found below:

* The bar in red indicates where King Wan's Gross Margin % falls into.

King Wan Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

King Wan's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )	=	Gross Profit (A: Mar. 2023 )	/	Revenue (A: Mar. 2023 )
	=	0.5	/	92.433
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(92.433 - 91.978)	/	92.433
	=	0.49 %

King Wan's Gross Margin for the quarter that ended in Sep. 2023 is calculated as

Gross Margin % (Q: Sep. 2023 )	=	Gross Profit (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	0.4	/	39.19
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(39.19 - 38.779)	/	39.19
	=	1.05 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

King Wan (SGX:554) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

King Wan had a gross margin of 1.05% for the quarter that ended in Sep. 2023 => No sustainable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

King Wan Gross Margin % Related Terms

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King Wan (SGX:554) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » King Wan Corp Ltd (SGX:554) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

8 Sungei Kadut Loop, Singapore, SGP, 729455

Website

https://www.kingwan.com

King Wan Corp Ltd engages in the provision of mechanical and electrical engineering services for the building and construction industry. It operates in five segments. The Plumbing and Sanitary segment provides services comprising the design and installation of water distribution systems and pipe networks for sewage and wastewater drainage. The electrical segment focuses on the electrical engineering services that design and install electricity distribution systems, fire protection, alarm systems, and security systems. The toilet rental segment consists of the rental and operation of mobile lavatories. The investment holding segment consists of investments in associates and joint ventures. Others segment involves other activities that do not fall into the activities of the other segments.

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